Environmental Engineering Reference
In-Depth Information
In addition to specific incentives and policies, some states have implemented
statewide programs to stimulate the deployment of advanced renewable energy
technologies. Three examples of states' efforts are described as follows (see app.
IV for further details):
•
Since 1980, Minnesota has provided mandates and production incentives
to stimulate ethanol production. In particular, Minnesota (1) established
an incentive in 1986 that paid ethanol producers 20 cents per gallon over
10 years and (2) mandated in 2003 that all gasoline sold in the state
contain at least 10-percent ethanol. In 2004, Minnesota's governor
proposed raising this mandate to 20 percent. As a result, the state is now
home to one-third of the nation's E85 (85 percent ethanol and 15 percent
gasoline) stations and has replaced nearly 10 percent of all its gasoline
consumption with ethanol.
•
In 2005, Texas enacted legislation that extended its 1999 RPS to require
the installation of 5,000 megawatts of new renewable capacity—in
addition to 880 megawatts of existing renewable capacity—by 2015. The
Texas RPS represents 5 percent of the state's electricity demand. Electric
power retailers that do not comply with RPS requirements are subject to
penalties of up to $50 per megawatt-hour, or 5 cents per kilowatt-hour.
Moreover, to ensure a wide variety of renewable projects, the Texas RPS
requires that 500 megawatts of new capacity come from renewable
sources other than wind. According to the Electric Reliability Council of
Texas, Inc., as of September 2006, Texas had installed over 1,900
megawatts of new renewable energy, representing about 3 percent of its
total electricity consumption.
•
In 2006, California enacted a $2.2 billion solar initiative to support the
governor's goal to install 3,000 megawatts of new solar energy by 2017.
In particular, the initiative provides rebates for new photovoltaic and
solar thermal systems, and pay-for-performance incentives that reward
high-performing solar systems (greater than 100 kilowatts). The initiative
also sets aside 10 percent of its funding to subsidize solar energy for low-
income and affordable housing projects. According to a state official,
California has already installed more than 150 megawatts of new solar
energy capacity.
